Setting up and running a charity – guidance

Charities and investment matters: a guide for trustees (CC14)

Find out how trustees can make the right decisions about investing charity funds.


Elusennau a Materion Buddsoddi: Canllaw i ymddiriedolwyr

Legal underpinning

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Trustees can invest money to provide income for their charity or as a way to meet its aims. When making investments, trustees must:

  • follow any rules set out in the charity’s governing document
  • take expert advice where necessary
  • have a mix of investments which will minimise any risk
  • explain the investment policy in the trustees’ annual report

The trustees need to have control of the charity’s investments and monitor their performance. Any advice taken on investments needs to be impartial.

The Charities (Protection and Social Investment) Act 2016 has introduced a statutory power for charities to make social investments. This is the Charity Commission’s interim guidance on the considerations for trustees when making social investment decisions. It will be reviewed in 2017.

The practical application of the power by charities will be one of the issues the commission will consider as part of a future review of its investment guidance.